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Temple Hotels Inc. announces acquisition of three Nova Scotia hotels

WINNIPEG, Feb. 27, 2013 /CNW/ - Temple Hotels Inc. ("Temple") (TSX: TPH)
announced today it has agreed to acquire a portfolio of three
full-service hotels in Nova Scotia, comprised of a total of 549 guest
rooms, at a combined price of $87.5 million ($159,380 per room),
subject to the customary closing adjustments. The portfolio consists of
the following hotels:

Prince George Hotel
The Prince George Hotel is a full-service hotel located at 1725 Market
Street in downtown, Halifax, Nova Scotia. The six-storey hotel opened
in 1986 and features 203-guestrooms, two restaurants, lounge, 5,900
square feet of meeting space, indoor pool and whirlpool, exercise room,
business centre and vending area. The hotel also has a 228 stall
underground parking garage and 6,220 square feet of leasable commercial
space.

Based on the forecasted net income for 2013, the acquisition price of
$87.5 million represents an estimated capitalization rate of 9.75%.
Temple will fund the acquisition price as follows:

A new first mortgage loan in the amount of $40 million with an estimated
interest rate of 4.5%, 25 year amortization and three year term;

Vendor take-back second mortgage in the amount of $16 million with
monthly interest-only payments at 5% and a five year term;

$12.5 million through the issuance to the Vendor of two million common
shares of Temple at a price of $6.25 per common share; and

The balance in cash.

The acquisition is scheduled to close as of March 1, 2013. Temple has
committed to the Vendor to invest $5 million in capital expenditures
relating to the three hotels during the two and a half year period
following the closing date.

About Temple
Temple is a real estate investment company listed on the Toronto Stock
Exchange under the symbols TPH (common shares), TPH.DB.B, TPH.DB.C,
TPH.DB.D, TPH.DB.E and TPH.DB.F (convertible debentures). The objective
of Temple is to provide shareholders with stable dividends from
investment in a diversified portfolio of hotel properties and related
assets. For further information on Temple, please visit our website at
www.templehotels.ca.

This press release contains certain statements that could be considered
as forward-looking information. The forward-looking information is
subject to certain risks and uncertainties, which could result in
actual results differing materially from the forward-looking
statements.

The Toronto Stock Exchange has not reviewed or approved the contents of
this press release and does not accept responsibility for the adequacy
or accuracy of this press release.